PEA - Key items not includedA few things not included in the recent PEA, not including the obvious resource below 300 mbs.
1 - Broken diamonds at CH-7 lead to an unquantified and artificial decrease in grade by 10 to 40%. Lead to a tough job trying to get a realistic valuation model. A clean sample would probably increase the value of stones.
2 - www expert on the CH-6 valuations basically said that the high end valuation (not used in the PEA) would be conservative. need more parcels from CH-6 to be able to move the base model valuation higher on the assumption that this independent guy was right.
3 - PEA threw a bunch of diamonds in the waste pile. Here are the caustic results from CH-20 that is included in the Ultimate pit outline. They were able to include KIM-C into the PEA this time...but still left CH-20 out of the equation.
That coarse distribution above would likely fit perfectly in the CH-6 curves...just a question of whether it is $200 per tonne material or $500 per tonnne material or somewhere in between. This would also reduce the strip ratio a couple of percentage points. Need to poke some more holes into CH-20 and see/confirm if it matches CH-6 distributions. They might be able to piggy back the valuation model on that if there are enough similiarities.
A couple hundred thousand tonnes at $500 per tonne is a nice CAD$100 million waste pile.
That type of waste pile would be a lot of juniors dream deposit.
LONG...PGD
EKIM